Journal ArticleDOI
An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance
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In this paper, the authors investigated empirically the relation between the value creation efficiency and firms' market valuation and financial performance, and found that firms' intellectual capital has a positive impact on market value and financial performances, and may be an indicator for future financial performance.Abstract:
Purpose – The purpose of this article is to investigate empirically the relation between the value creation efficiency and firms’ market valuation and financial performance.Design/methodology/approach – Using data drawn from Taiwanese listed companies and Pulic's Value Added Intellectual Coefficient (VAIC™) as the efficiency measure of capital employed and intellectual capital, the authors construct regression models to examine the relationship between corporate value creation efficiency and firms’ market‐to‐book value ratios, and explore the relation between intellectual capital and firms’ current as well as future financial performance.Findings – The results support the hypothesis that firms’ intellectual capital has a positive impact on market value and financial performance, and may be an indicator for future financial performance. In addition, the authors found investors may place different value on the three components of value creation efficiency (physical capital, human capital, and structural cap...read more
Citations
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Journal ArticleDOI
The impact of intellectual capital on firms' market value and financial performance
TL;DR: In this article, the authors examined the impact of intellectual capital on firms' market value and financial performance and concluded that there is a statistically significant relationship between human capital efficiency and financial performances.
Journal ArticleDOI
Analysing value added as an indicator of intellectual capital and its consequences on company performance
Daniel Zéghal,Anis Maaloul +1 more
TL;DR: In this article, the role of value added (VA) as an indicator of intellectual capital (IC) and its impact on the firm's economic, financial and stock market performance is analyzed.
Journal ArticleDOI
Intellectual capital and firm performance in Australia
TL;DR: In this paper, the effect of intellectual capital (IC) has on firm performance of Australian companies is examined using Pulic's value added intellectual coefficient (VAIC) and its components (human, structural and capital employed efficiencies (HCE, SCE, CEE)).
Journal ArticleDOI
Global labor flow network reveals the hierarchical organization and dynamics of geo-industrial clusters
Jaehyuk Park,Ian B. Wood,Ian B. Wood,Elise Jing,Azadeh Nematzadeh,Souvik Ghosh,Michael Conover,Yong-Yeol Ahn +7 more
TL;DR: It is argued that geo-industrial clusters defined by labor flow provide useful insights into the growth of the economy by demonstrating a stronger association between the influx of educated-workers and financial performance compared to existing aggregation units.
Journal ArticleDOI
Extended VAIC model: measuring intellectual capital components
TL;DR: In this article, the VAIC model is extended to incorporate the role of intellectual capital (IC) in organizational performance. And the authors provide a theoretical discussion designed to push the measurement of IC into a more rigorous and comprehensive domain.
References
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Book ChapterDOI
Firm Resources and Sustained Competitive Advantage
TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
Journal ArticleDOI
The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications
Thomas Donaldson,Lee E. Preston +1 more
TL;DR: In this article, the authors examine three aspects of the stakeholder theory and critique and integrate important contributions to the literature related to each, concluding that the three aspects are mutually supportive and that the normative base of the theory-which includes the modern theory of property rights-is fundamental.
Book
Intellectual Capital: Realizing Your Company's True Value by Finding Its Hidden Brainpower
Leif Edvinsson,Michael S. Malone +1 more
TL;DR: In this article, the authors define the concept of intellectual capital as a phrase covering corporate brainpower, information technology, and relationships with customers and suppliers, all of which influence a company's ability to make money.
Book
Strategy Maps: Converting Intangible Assets into Tangible Outcomes
Robert S. Kaplan,David P. Norton +1 more
TL;DR: In this paper, the authors present a strategy map for aligning intangible assets to enterprise strategy and planning the campaign, which is based on the Strategy Map to Strategy Map (SMSM) framework.
Journal ArticleDOI
The capitalization, amortization, and value-relevance of R&D
Baruch Lev,Theodore Sougiannis +1 more
TL;DR: In this paper, the authors estimate the R&D capital of a large sample of public companies and find these estimates to be statistically reliable and economically meaningful, and they then adjust the reported earnings and book values of sample firms for the R-D capitalization and find that such adjustments are value-relevant to investors.